Township OKs property tax break for seniors

Board approves plan, but does not set rate or timetable for implementation

BETH KUHLES, CHRONICLE CORRESPONDENT

Published
5:30 am CDT, Thursday, April 23, 2009

The Woodlands Township has approved a tax exemption for seniors and people with disabilities, but it won’t take effect at least until the 2011 tax year.

After a lengthy debate, the board voted eight to two on creating a property tax exemption for those 65 and older as well as for the disabled, but it did not set an amount or a time frame for implementation. The issue will be revisited in 2010 for the 2011 tax year. Board members Alex Sutton and Peggy Hausman voted against the measure.

“I think it was a real quandary for each of the board members,” said Township Chairwoman Nelda Luce Blair. “We are trying to do the right thing for all of the residents. It was a very conscientious decision and the board members want to know the costs and where it will go from here. They just put off the decision for the year.”

Board attorney Mike Page said the resolution was legal, but non-binding. Future boards could vote to overturn the measure.

“It is not effective and not binding until you complete the process,” Page said.

The township received a petition signed by 1,129 residents seeking a $60,000 tax exemption for seniors in the community. The proposed exemption would have led to a 3/4-cent tax increase per $100 of assessed value for other residents in the community.

Paul Martin of the Windsor Hills Association urged the board to adopt a compromise exemption at $25,000, saying it would create only a $75 tax break for seniors and $9 increase for the rest of the residents.

“I’m imploring you not to do the Texas two-step by tabling the motion or sending it back to the voters,” Martin said.

Resident John Risher said he was opposed to the exemption, saying that homeowners are seeking less taxes, not more, as demonstrated by the recent Tea Party rally that drew thousands to Rob Fleming Park to oppose the federal government’s spending plans. He said with the poor economy, the vast majority of residents would be asked to supplement the few seniors, many who could afford to pay the increase. He cited one of the petitioners owned an $885,000 home.

“All the petitioners get a tax break from the county and (Conroe Independent School District), but apparently that’s not enough,” Risher said. “They are asking for special treatment without any reason.”

In 2010, The Woodlands Township will take over services provided by local property owners association and switch from assessment fees to property taxes to fund them. The township also will offset those costs through the collection of sales and hotel taxes in the district.

The tax exemption are based on a base budget of about $36.5 million, and the district is looking at a tax rate of 35 cents per $100 or below, said Don Norrell, president of the township.

The board was divided over tax exemptions for seniors. While some supported the tax cut to assist residents on fixed incomes, others argued it was too early in the township’s existence to consider exemptions.

“We haven’t even set a tax rate,” Hausman said. “Why are we putting the cart before the horse?”

Board member Tom Campbell said the exemption could help residents on fixed incomes, who faced an average increase in assessed value of $18,870 last year. He said the exemptions amount to only about $300,000, while the township gave $250,000 to The Cynthia Woods Mitchell Pavilion earlier this year for hurricane repairs and a renovation.

“I’m not concerned about the 65 year olds,” Campbell said. “I’m concerned about the 66 to 100 year olds, many of them widows and widowers, on a fix income.”

Sutton said it was too early in the process. He suggested that a non-binding referendum be included on the issue in the 2010 election.

“We will be plowing new ground and we have to be careful,” Sutton said. “I just think it is too early.

The issue is expected to be taken up in 2010, when the board is expected to decide on whether to begin the tax exemption for the following budget year and how much it will be.